- 10 -
When it eventually became apparent that payment from Mr.
Fields would not be forthcoming, petitioner’s case was reset for
trial at the Court’s trial session commencing on December 3,
2001, in Houston, Texas. When the case was called from the trial
calendar, the parties filed a supplemental stipulation of settled
issues, pursuant to which (1) respondent conceded 50 percent of
the remaining business expense deductions at issue, (2)
petitioner conceded the section 6015(c) issue, and (3) petitioner
reserved her right to file a motion for litigation costs under
section 7430.
Discussion
I. Overview of Section 7430
A. Relevant Provisions
Section 7430 provides that, if certain conditions are met, a
taxpayer who prevails against the United States in any tax
proceeding (administrative or judicial) may recover reasonable
costs incurred in connection with such proceeding.4 Section
7430(c)(4)(B) provides that a taxpayer shall not be treated as
the prevailing party in any such proceeding if the United States
establishes that its position in the proceeding was substantially
justified. In his objection to the motion, respondent seeks to
establish that his position in this litigation was substantially
4 Petitioner does not seek costs incurred in connection
with the administrative phase of this case.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011